The infrastructure industry is hoping that history will repeat itself in H2FY23.

The rate of road construction has increased significantly over the last three months from 19.5 km per day in the first half (H1) of FY23 to nearly 23 km per day today.

According to data obtained from industry stakeholders and the transportation ministry, the rate of road construction has increased significantly over the last three months from 19.5 km per day in the first half (H1) of FY23 to nearly 23 km per day today. Until November, nearly 4,766 km of high-rise construction had been completed, accounting for approximately 39% of the 12,200 km goal set for the fiscal year.

Despite all efforts, industry insiders estimate that hitting the annual goal would require daily road construction of at least 50 to 60 km, which they describe as a "daydream." They argue that even if road construction slows to around 30 km per day, it should still be praised.

Road transportation now accounts for roughly 90% of passenger traffic and 65% of freight traffic, making it the world's second-largest mode of transportation after the United States, which has 66.45 lakh kilometres of roads.

Because of its high penetration level and door-to-door delivery, road transportation remains one of the most practical and affordable modes of transportation for both freight and passengers, despite its many disadvantages. Prior to the rise in fuel prices,OEMs frequently shipped cars by road to their warehouses and dealerships; however, some companies, such as Maruti Suzuki, are now increasingly choosing to ship cars by railroad.

A similar trend was observed in the previous two fiscal years, according to industry data. Despite the pandemic's worst-case scenario, the NHAI approved the most projects in a fiscal year in FY 2021, awarding contracts worth Rs. 1,30,000 crores over 4,818 kilometres. 4,970 km of roads worth more than Rs 1,40,000 crores were built the following year, in FY2022.

The government plans to introduce the first surety bonds insurance to help road contractors with liquidity. The road transport and highways ministry hope to launch the first surety bonds insurance product offered to highway contractors by general insurance companies.

Surety bonds are payment guarantees provided by insurers; however, unlike bank guarantees, they do not freeze a significant portion of the project funds supplied by contractors. During the Covid-19 crisis, when liquidity requirements for capital-intensive infrastructure sectors became urgent, the Centre was the first to promote the idea.

Furthermore, in order to encourage private capital and efficiency in the execution and operation of infrastructure projects, the Ministry of Finance announced in November a scheme for financial support for PPP project development expenses. The new scheme, known as the India Infrastructure Project Development Fund Scheme (IIPDF Scheme), is applicable to both Central and State projects. It includes financial and technical assistance to the private sector in meeting the costs of transaction advisors and consultants working on PPP projects.

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